Please go through the article to know more about vendor scheduling, its benefits, and vendor scheduling agreement.
Vendor Scheduling is a process where the raw material required is communicated to the firm’s suppliers for an agreed period.
That is done through rigorous planning that also considers the demand forecasts and shipping schedules that consider only the customers’ confirmed demand.
The data is gathered from several internal verticals such as the purchasing department and forecasts as predicted by the planning department.
A supplier scheduling system is a contract where the business will provide schedules instead of hard copies of the purchase orders.
Supplier scheduling includes the following tasks:
- Defining vendor schedule
- creating vendor schedule
- Updating vendor schedule
- Releasing vendor schedule
- Printing vendor schedule
The schedule can vary from weeks to months for a specified financial year.
What is a vendor scheduling agreement?
A vendor scheduling agreement is a purchase agreement made with the vendor that tie-ups the vendor for providing materials under pre-agreed conditions.
This agreement contains the quantity and delivery date of the material or item required to the buyer.
The vendor scheduling agreement also contains the procurement type of each item. Those procurement types are stock transfer, consignment, standard, and subcontracting.
The entire quantity of items mentioned in the vendor scheduling agreement to be delivered is getting over a period in the delivery schedule.
That is mentioned in terms of lines and indicates each item with its planned delivery date.
If items in the scheduling agreement are subcontracting, you can mention those items to be provided to the subcontractor regarding one and all scheduled delivery of the ordered item.
Conditions can be applied to the whole scheduling agreement. However, conditions at the item level will be applied particularly to the item to be delivered in each case.
Releases of the scheduled agreement are issued to the supplier and instruct the material delivery on the date shown.
The cost of the item can allocate through the account assignment. Finally, the supplier can issue the confirmation to the customer organization, specifying their consent with the scheduled delivery date.
Benefits of Vendor Scheduling
- Helps to provide accurate shipping information to your vendor
- Allows you to identify both short and long-term requirements for purchased items and allows vendors to plan their manufacturing and shipping schedules.
Vendor Scheduling software
Following are the 12 best software that helps to schedule and manage the vendor. Some of them are free software.
- SAP Ariba
- SAP Feildglass
- Airbase ( free software)
- Oracle Procurement Cloud
- Genuity( free software)
- Blissfully(free software)
- Gatekeeper (free software)
- Precoro(free software)
What do you mean by scheduling?
Scheduling is a technique of planning your work to reach your objectives within a given time. When you schedule your work appropriately, it increases your efficiency.
Get more definitions about Vendor scheduling and other ERP-related terms here.